Will insurtechs take off in Brazil?
The insurance industry has always been seen as the most unfashionable financial market in Brazil. Many Brazilians don't see the benefit of purchasing something that might never be used, especially when it is not required by law, like auto insurance.
The sector has also struggled when it comes to hiring, since salaries and bonuses at insurers are generally lower than those paid by banks.
But technological advances could change that. According to local business magazine Exame, Brazilian entrepreneurs have begun following the trend that has emerged in the US and Europe of creating startups – called insurtechs – that could make purchasing insurance easier and, potentially, cheaper by carrying out the transactions online.
One of the newest startups, called Segurize, launched earlier this month. The company has created a sales app aimed at professionals hoping to earn some extra income. If a client recommends the insurer to someone who then purchases an insurance product with Segurize, the current client is awarded points that can be converted into cash or products.
Another startup offering insurance services online is Youse, which received an investment of 500mn reais (US$147mn) from Caixa Seguradora.
The recent interest of entrepreneurs and potential investors in the insurance market can be explained by the sector's growth in the midst of the country's deep recession. Revenues have increased by an average of 10% a year since 2014, with industry executives expecting 8-10% growth this year.
Insurtechs in the US and Europe began to emerge some 10 years ago and now account for an estimated 10% of insurance sales. As Brazil's foray into this new territory is more recent, sales through these new companies currently account for just 1% of the total.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Political Risk & Macro (Brazil)
Repaving the path to glory: Brazil construction companies primed for comeback
After a decade in the wilderness, major players could take advantage of a scenario that is unique in recent Brazilian history, BNamericas was told.
Spotlight: Political interference in Brazil's mining sector
Political intervention in the sector was highlighted once again this week.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects
Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.
- Project: Centenario Way (Panama Pacifico to Autopista Arraiján - La Chorrera)
- Current stage:
- Updated:
1 day ago
- Project: El Aromo photovoltaic project
- Current stage:
- Updated:
1 day ago
- Project: Araguaia (Phase 2)
- Current stage:
- Updated:
11 hours ago
- Project: Barueri Thermoelectric Plant
- Current stage:
- Updated:
1 day ago
- Project: Alvear - Itaqui international bridge
- Current stage:
- Updated:
1 day ago
- Project: Phase IV Tietê river cleanup
- Current stage:
- Updated:
1 day ago
- Project: Tietê river sanitation - Phase III
- Current stage:
- Updated:
1 day ago
- Project: Urani wind farm
- Current stage:
- Updated:
6 hours ago
- Project: Photovoltaic 3 Solar Project
- Current stage:
- Updated:
1 day ago
- Project: Culebrinas Water Treatment Plant Rehabilitation
- Current stage:
- Updated:
1 day ago
Other companies
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: Zenith Energy Corp., S.R.L.
- Company: Etermar Sucursal Perú  (Etermar Perú)
-
Etermar Peru is the local branch of the Portuguese maritime engineering and construction company Etermar. The company began operations in Peru in 2017. Etermar provides services...
- Company: Pluspetrol Bolivia Corporatión
- Company: Energía 2000 S.A.  (Energía 2000)
-
Energía 2000 S.R.L is a company based in Dominican Republic and engaged in generation and sale of electric power. The firm is in charge of Manzanillo Power Energía 2000 thermoel...